OECS Pharmaceutical Procurement Service (PPS) 40th Anniversary Feature

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The OECS Pharmaceutical Procurement Service (PPS) marks a significant milestone as it celebrates its 40th anniversary, having evolved from a modest initiative into a robust, self-financing regional institution. Established on August 1st, 1986, the service began by procuring just 200 medicines to test the system and build confidence among member states. Within four years, it achieved full financial independence and was formally institutionalized within the OECS Commission. The program is entirely owned by its member states, who actively participate in governance through various committees, including the Policy Board of Health Ministers, the Tenders Committee, and Technical Advisory Committees, ensuring that decisions are made by those who directly depend on the service. Over the decades, the PPS has demonstrated remarkable growth, with annual procurement values rising from $2 million at its inception to nearly $30 million today. This expansion is driven by the power of collective demand, allowing nine states to achieve a purchasing scale that would be impossible for any single country to reach alone. A prime example of this efficiency is human insulin, which remains the largest single line item in member states' pharmaceutical budgets; through the PPS mechanism, the price per vial has been held steady at $4.50 across three consecutive tender cycles spanning six years. Furthermore, the service has progressively reduced the surcharge levied on invoices from an initial 15% down to 9%, significantly lowering upfront costs for member countries while maintaining operational sustainability. Beyond cost savings, the PPS ensures access to high-quality medicines by strictly pre-qualifying all suppliers and manufacturers according to World Health Organization standards for good manufacturing, storage, and distribution practices. This rigorous evaluation process guarantees that medications in the supply chain are efficacious and safe, providing patients with affordable healthcare options, such as seeing a physician and obtaining prescribed medication for only $5. The service also plays a critical role in regional resilience, acting as a vital resource during natural disasters like hurricanes or pandemics like COVID-19. By coordinating among suppliers and unaffected member states, the PPS can quickly source essential items, such as antiretrovirals, to ensure continuous treatment for those affected by crises. Looking toward the future, the PPS aims to expand its portfolio beyond pharmaceuticals to include medical equipment procurement, promoting standardization across the region while continuing to adapt to changing healthcare needs and new discoveries. The organization plans to further integrate technology and digital procurement systems to enhance efficiency over the next decade. This vision is grounded in a proven track record of success; starting with a $3 million grant that paid for itself within three years, the PPS has remained self-financing ever since. As the service enters its second chapter, confidence remains high that it will continue to serve as a beacon of collaboration, affordability, and quality for the Eastern Caribbean population.

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Since its establishment on the 1st of August, 1986, PPS evolution has been significant. We started with the procurement of 200 medicines to test the system and to build confidence in the program. And within 4 years, OECS [music] PPS, we became fully self-financing, which was institutionalized within the OECS Commission. >> The member states own it. From the beginning, these countries themselves have sat on committees that run the service. We have the policy [music] Board of Health Ministers, the Tenders Committee, the Technical Advisory Committees. [music] And the decisions are made by the people who depend on the service. >> So, this is remarkable. Our annual procurement value was $2 million when we started in our first full tender. [music] Today, 2025, 2026, our annual procurement value is nearly $30 million per annum. >> By combining the demand of nine states, we build at a scale that none of us could reach alone. Human insulin is the largest single line item in the member states' pharmaceutical budgets. Through this mechanism, a vial of human insulin was held at $4.50 across three consecutive [music] tender cycles, 6 years. >> We began our program charging countries a 15% surcharge levied on every invoice to cover the recurrent [music] expenditure of the operations. We have progressively lowered the surcharge from 15% >> [music] >> to 13%, 11%, and 9%. What it means is that the upfront cost for member countries have been reduced. >> OECS PPS is very important because it offers to the members and the population within the the subregion an avenue to to access pharmaceuticals and medical supplies at a more appropriate cost. >> The pool procurement has made a tremendous difference for the patients and [music] of servants and under granted aid. Right? So, we are able to have medication at prices that allows the government to make healthcare extremely [music] affordable. So, a patient coming through our public healthcare system, they're [music] able to see a physician and get their prescribed medication at a $5 revenue [music] stamp. >> The OECS PPS program has improved access to quality medicines, not just the medicines, [music] but quality medicines by ensuring that all suppliers and manufacturers [music] are pre-qualified. The OECS PPS evaluate individuals and all the companies [music] according to the WHO um good manufacturing practices, good storage practices, [music] um good distribution practices. We benefit with the testing of the medications that are in supply chain that are procured through OECS PPS >> [music] >> to ensure that they are of good quality and that they're efficacious. >> Persons can rest assured that once they're taking the medications procured through the OECS, they're in [music] safe hands. >> In the aftermath of hurricanes or natural disasters, countries which are not affected by the hurricane, we could [music] actually source items from one country which is not affected and help [music] and lend those items to other countries which are affected by the hurricane. >> We were in short supply in our country, Grenada. We reached out to OECS PPS [music] who coordinated among suppliers as well as within the region of the member states. We were able to get [music] in a short time frame, get antiretrovirals to have that continuing treatment. >> COVID-19, OECS PPS really stood up to the plate. >> [music] >> And they really brought compassion, understanding, and a lot of assistance to us. >> The interaction with other organizations like Direct Relief for in terms of funding for resources like what we as I said we we received in country [music] of two two pickups and other emergency reliefs. >> [music] >> Suppliers trust us. The Eastern Caribbean Central Bank acts as our paying agent and it remits to suppliers in foreign [music] exchange. And the Eastern Caribbean dollar, as you know, has been pegged to the United States dollar since [music] 1976. 10 years before the PPS service even existed. >> [music] >> So, a supplier bidding into a nine-country tender carries no currency risk at [music] all. >> One of the biggest opportunities I see for the OECS PPS over the next 10 years [music] is for them to continue expanding the range of the pharmaceuticals that's available [music] through all the procurements. Healthcare is continuously changing. New medicines are being discovered, prescription patterns are changing, so too are the needs of our patients. >> My hope for the next 40 years for OECS PPS [music] is that increase the use of the technology >> [music] >> and digital procurement system, expand it out. I also hope that they can build out their portfolio and go into equipment procurement [music] so we can have more standardized equipment used across [music] the member states. >> 40 years ago this began as a decision by [music] small states to work together seeded with a $3 million grant and [music] it paid for itself within 3 years. It has been self-financing ever since. That's what makes me [music] confident about the next chapter.